Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

4.1.2 Heat map

The heat map below sets out the top five risks for the West Africa Region, as identified through our Enterprise Risk Management (ERM) process.

Figure 4.7: Top five West Africa region heat map

Risks   Mitigating strategies  
Carrying out infill drilling programme to improve confidence in mine potential
Upgrading of processing plant, including the enhancement of its crushing capability to sustain long-term process capacity of 5Mtpa
Exploration of potential operational synergies with Tarkwa
Direct and indirect engagement with government to highlight negative consequences around long-term revenue generation and employment
Submission of a proposed stability agreement to the government to ensure a level playing field with in-country peers
Ongoing monitoring of business environment and modelling of actual/potential impacts of fiscal/policy changes
Communication of existing contributions to the Ghanaian economy
Implementation of a comprehensive water management plan
Implementation of enhanced environmental reporting structures at Damang and Tarkwa
Completion of new water treatment plants for Tarkwa’s heap leach facilities
Direct, ongoing engagement with the Environmental Protection Agency and other relevant stakeholders
Indirect engagement via the Chamber of Mines to assist government/regulators in the development of effective and operationally viable environmental regulations
Completion of environmental and legal due diligence at Tarkwa and Damang to assess and mitigate risks
Ongoing application of our comprehensive, multi-layered stakeholder engagement model
Auditing of social projects to gauge impact on host communities and quantify Gold Fields overall contribution to socio-economic development
Application of the ‘shared value’ concept
Carrying out of a feasibility study for a combined ‘clean coal’/biomass power plant
Agreement of power purchase sale agreement with the Volta River Authority and the Electricity Company of Ghana, as well as transmission agreement with GridCo. This was achieved after the 2012 year-end
Implementation of energy efficiency measures
Long-term development of/support for independent power providers

Growth projects

In the first quarter of 2012, we completed all drilling activities and resource models to support the feasibility study for the Damang Superpit project in Ghana. The geological, mining and metallurgical components of the study indicated a robust project under prior tax conditions.

In the second quarter, however, we slowed work on the project, due to the negative impact of recently introduced changes to the local fiscal regime that would materially increase our tax liabilities – including the imposition of less favourable capital allowances. We are still in discussions with the government of Ghana in this respect.

In the meantime, we initiated a concept study on a smaller, more capital efficient starter project to bring Damang’s potential to account earlier and in a more incremental way. This is focused on a Damang pit cut-back to provide higher-grade ore to the existing plant.